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Article
Publication date: 9 May 2016

Anders Pehrsson

A multinational firm’s expansion in a foreign market is a key issue of international business. The purpose of this study is to extend the understanding of essential drivers that…

Abstract

Purpose

A multinational firm’s expansion in a foreign market is a key issue of international business. The purpose of this study is to extend the understanding of essential drivers that will facilitate firm’s assessment of alternative modes of sequential expansion.

Design/methodology/approach

The study applies the knowledge-based view and explores a multinational firm’s sequential post-entry expansion in a foreign market. Event histories of Swedish industrial firms’ establishments of wholly owned subsidiaries in Germany, the UK and the USA were explored using Cox regression.

Findings

Broad market experiences stemming from corporate strategy and deep experiences from the preceding subsidiary increase the likelihood of a sequential investment. Effects of broad experiences are contingent on the context specified by the geographic scope of the firm and its general subsidiary experience.

Research limitations/implications

The study contributes to international expansion theory and integrates sources of knowledge originating from strategy theory and internationalization theory. The study shows that the dual approach is needed to understand international expansion.

Practical implications

In evaluating a further subsidiary investment in a foreign market, the multinational firm is advised to assess whether it possesses enough market experiences to justify the investment. The experiences should be associated with corporate strategy, the previous wholly owned subsidiary and the context specifications identified in the study.

Originality/value

The study is unique, as it addresses the simultaneous impact of broad and deep market experiences. Also, the inclusion of central context specifications makes the study novel.

Details

European Business Review, vol. 28 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 January 2012

Lisa Qixun Siebers

This paper aims to examine the important factors that influence foreign retailers' expansion in China. By doing so the paper proposes business strategies for foreign retailers to

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Abstract

Purpose

This paper aims to examine the important factors that influence foreign retailers' expansion in China. By doing so the paper proposes business strategies for foreign retailers to be successful in China and other emerging economies.

Design/methodology/approach

A case study approach is employed to build theory. Five case studies were chosen, including the world's four largest retail firms: Wal‐Mart, Carrefour, Metro and Tesco, as well as the Japanese department store Heivado.

Findings

The paper identifies six important activities in successful retail expansion: adaptation to the external environment; responses to psychic distance; establishment of business networking; localization; entry strategies into new areas; and the role of local management team. A new framework articulates the interdependent relationships between various factors embedded in retail internationalization, including external environment, internal drivers, psychic distance, and expansion strategies.

Practical implications

The findings provide directions to managers of international retail firms on how to expand successfully in an emerging market.

Originality/value

This paper offers an exploratory framework on post‐entry expansion, which provides an indispensable link between previous research on pre‐entry and entry stages of retailer expansion and future research on foreign retailers' performance.

Details

Journal of Business Strategy, vol. 33 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 20 November 2020

Huifeng Bai, Julie McColl, Christopher Moore, Weijing He and Jin Shi

This empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the…

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Abstract

Purpose

This empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the context of the luxury fashion retail market in China.

Design/methodology/approach

The research adopts qualitative multiple case studies.

Findings

After initial entry into China, luxury fashion retailers further expand their retail operations through three directional patterns: cautious, regional and countrywide expansions. The stepwise expansion from tier-1 to tier-2 and tier-3 cities remains popular; however, the importance of the tier system of Chinese cities has been weakened because tier-3 cities in affluent regions are perceived to have more potential than some tier-2 cities in less developed regions. The retailers assess a potential local market through interrelated criteria, including location and strategic importance, economic development, available store locations and staff, a high degree of urbanisation and tourism, debatable favourable policies and offers, and popularity of e- and m-commerce. There is a positive relationship between popularity of e- and m-commerce in a city and the potential of that city to run brick-and-mortar stores.

Originality/value

The paper offers an insight into the current international retailing literature by examining the direction of luxury fashion retailers' further expansion after their initial market entry. Particularly, the research considers a set of criteria which can be used to assess a potential local market, and the impact of e- and m-commerce on local market choices for brick-and-mortar stores.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 22 November 2017

Huifeng Bai, Julie McColl and Christopher Moore

The purpose of this paper is to examine internationalising luxury fashion retailers’ entry and post-entry expansion strategies in mainland China.

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Abstract

Purpose

The purpose of this paper is to examine internationalising luxury fashion retailers’ entry and post-entry expansion strategies in mainland China.

Design/methodology/approach

The study adopts a pragmatic mixed-methods research approach, including a quantitative mail survey and qualitative face-to-face in-depth executive interviews.

Findings

Different from initial single entry methods, multiple methods are increasingly popular for luxury fashion retailers’ post-entry expansion in mainland China. Although directly controlled expansion strategies have become significant, local partnerships are still important and omnichannel distribution strategies are rapidly growing.

Research limitations/implications

The findings were generated in mainland China only.

Originality/value

This work provides an understanding of luxury fashion retailers’ activities in the Chinese market from both macro and micro perspectives. It examines luxury fashion retailers’ initial entry strategies, as well as their post-entry expansion strategies in mainland China. Few studies in the area of international luxury fashion retailing have employed a mixed-methods approach with this number of participants.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 16 August 2021

Beatrice Zanellato Mayer and Dinora Eliete Floriani

This paper aims to analyse how the temporal dimension is conceptualised in studies of the internationalisation process of firms and its implications. Theoretical models such as…

Abstract

Purpose

This paper aims to analyse how the temporal dimension is conceptualised in studies of the internationalisation process of firms and its implications. Theoretical models such as U-Model and INV explain the process of internationalisation as dynamic; nonetheless, time is approached as an underlying aspect of the process. In this essay, time is brought to the spotlight since, despite its strategic relevance, it has been treated implicitly in studies of the internationalisation processes, except in those that address the speed of internationalisation.

Design/methodology/approach

Based on a critical reassessment of the academic literature, the authors present theoretical arguments and highlight elements to be considered in the analysis of the temporal dimension throughout the internationalisation process of firms.

Findings

This essay focuses on expanding the comprehension of temporality in the internationalisation process, that underlies periods of changes, implied also in periods of stability. The paper discusses time dimension implications during the internationalisation process and reveals that there is an interaction between temporal verticality (context/events), subjective dimension of time (perception and interpretation of time) and objective dimension of time (stability and changes). Therefore, it sustains that these interactions compress past, present and future actions in the internationalisation process.

Research limitations/implications

Because of the chosen research approach, this essay did not empirically apply the theoretical model and propositions. Therefore, future studies may empirically apply the propositions and use the temporal lens to look deeper at the temporality of internationalisation process and shed further light on the mechanisms that interlink the pre-and post-entry phases.

Practical implications

The argument helps entrepreneurs understand that actions throughout the internationalisation process are also influenced by the experience of time and not only governed by rational matters. Changes in the context can alter the perception of present time as being restricted, and in turn, may alter the flux of future internationalisation actions. However, if actions are conducted in a precipitated manner it can bring forth negative results for the firm. It is essential to recognise the importance of temporal verticality and subjective dimension of time as influencers of future actions of the objective dimension of time in the process of internationalisation.

Originality/value

While most research is restricted to understanding time as speed, this essay brings a theoretical model extending the knowledge of time in the literature of international business and international entrepreneurship, by including factors that imply temporality. By explaining the relationship between temporal aspects, it is argued that temporal verticality (events and context) influences temporal subjectivity (perception of the present and interpretation of the past) to direct future actions of the temporality of internationalisation (stability and changes).

Details

critical perspectives on international business, vol. 18 no. 5
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 22 September 2021

Huifeng Bai, Julie McColl and Christopher Moore

From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.

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Abstract

Purpose

From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.

Design/methodology/approach

Using case studies of 14 luxury fashion retailers, qualitative data were collected via 31 semi-structured executive interviews.

Findings

Both standardised global and localised multinational marketing strategies were found to have initially been employed by luxury fashion retailers entering into China. Subsequently, localised multinational strategies became increasingly important for their post-entry operations and business development, particularly in terms of their product strategies. More specifically, as well as the introduction of Chinese brand names, product design has been adapted according to Chinese market conditions, and product portfolios have been adapted to satisfy regional differences. However, localised product sourcing in China is far less common.

Research limitations/implications

As the findings are generated from China, they may not explain luxury fashion retailers' marketing strategies in other markets. Despite the relatively small sample size, the 14 luxury fashion retailer case studies originate from across a wide range of countries, retail formats and ownership structures and are therefore considered to be varied enough to represent the market.

Practical implications

The study offers practitioners insights into the success that can be generated by the manipulation of marketing strategies, particularly product strategies, within the world's second biggest luxury market.

Originality/value

This paper extends the current international retailing literature by examining and comparing the motives and practices of luxury fashion retailers and the increasing localisation of their marketing strategies in China as they move from initial market entry into their post-entry operations.

Details

International Marketing Review, vol. 39 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 10 October 2022

Linghua Qin, Naveed Akhtar, Qamar Farooq and Syed Hussain Mustafa Gillani

Previous research features the international experience of managers in the decisions regarding internationalisation speed. However, the vitality of the role a chairperson plays in…

Abstract

Purpose

Previous research features the international experience of managers in the decisions regarding internationalisation speed. However, the vitality of the role a chairperson plays in shaping the internationalisation decisions of small and medium-sized enterprises (SMEs) from emerging economies is intriguing. Moreover, the decision-making process and leadership context of SME internationalisation are not fully understood. Drawing upon the upper echelons decision-making theory and the cognitive perspectives of decision, this paper examines the impact of a chairperson's previous experience on the post-entry speed of internationalisation, highlighting the conditioning effects of leadership contingencies – the functional variety and power of the chairperson.

Design/methodology/approach

The study uses a panel data set of Chinese SMEs active from 2010 to 2019 to test the research hypotheses. A feasible generalised least-squares estimator was applied to test the hypotheses.

Findings

The results show that the international experience of a chairperson speeds up the depth and breadth of the post-entry speed of internationalisation. However, the strength of these relationships depends on the leadership context. The chairperson's functional variety alleviates the influence of international experience, whilst the power of the chairperson reinforces its impact.

Originality/value

The results show that the international experience of a chairperson speeds up the depth and breadth of the post-entry speed of internationalisation. However, the strength of these relationships depends on the leadership context. The chairperson's functional variety alleviates the influence of international experience, whilst the power of the chairperson reinforces its impact.

Details

International Journal of Emerging Markets, vol. 19 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 23 September 2021

Xiaoxuan Li, Yue Wang, Miles M. Yang and Yanzhao Tang

This study explores the impact of owner chief executive officers' (CEO) narcissism on the exporting small to medium-sized enterprises' (SMEs) decision-making on the international…

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Abstract

Purpose

This study explores the impact of owner chief executive officers' (CEO) narcissism on the exporting small to medium-sized enterprises' (SMEs) decision-making on the international market expansion speed after their initial entry. Specifically, the authors use the mechanism of firms' international entrepreneurial orientation (IEO) to examine how owner CEO narcissism may influence SMEs' post-entry speed of internationalization (PSI), both directly and indirectly.

Design/methodology/approach

To test the hypotheses, the authors draw on data from a two-wave questionnaire and on archival export data from 291 Chinese exporting SMEs in three municipalities and 17 provinces from 2019 to 2020.

Findings

The results support the theoretical predictions that owner CEO narcissism shapes exporting SMEs' decisions on PSI, both directly and indirectly, through the mediation of firm-level IEO.

Originality/value

The study extends emerging research on the role of CEO narcissism in the upper echelons literature into the international marketing (IM) context. It also offers new insights into what drives exporting SMEs' IM decision-making from a psychological microfoundations perspective. Furthermore, the authors theoretically establish and empirically demonstrate the key role of a firm's IEO as a mediator to complement the existing literature's focus on the direct influence of CEO narcissism on firms' internationalization decisions.

Details

International Marketing Review, vol. 40 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 12 January 2015

Paresha Sinha, Mingyang (Ana) Wang, Joanna Scott-Kennel and Jenny Gibb

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies…

Abstract

Purpose

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies. Specifically, we investigate how home market and global industry contexts influence market-entry strategies, and how psychic distance influences initial then subsequent market-entry choice decisions.

Design/methodology/approach

Using Atlas.ti7 software, this paper adopts a qualitative, multi-case analysis of ten software INVs based in New Zealand. Thematic coding of interview and secondary data revealed three core processes: pre-entry considerations, market selection criteria and post-entry evaluation, across the stages of initial and subsequent market entry.

Findings

In the context of the global software industry, the key driver of proactive market entry by INVs from small, open economies is market size rather than psychic distance. During the process of market expansion, firms encounter the psychic distance paradox (PDP). A second paradox arises when, despite experiential learning, managerial perceptions of psychic distance increase, making entry into more distant markets less, rather than more, likely and reactive, rather than proactive.

Originality/value

This paper addresses contextual differences in software versus more traditional sectors, and the influence of psychic distance on market entry rather than outcomes. Specifically, extending our understanding of the PDP, we find perceptual psychic and cultural distance ignored as criteria for initial market-entry decisions, and initial positive attitudes toward risk-taking become less apparent during subsequent entries.

Details

European Business Review, vol. 27 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 23 October 2018

Huifeng Bai, Julie McColl and Christopher Moore

The purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.

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Abstract

Purpose

The purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.

Design/methodology/approach

This study adopts a pragmatic mixed methods approach, comprising a quantitative mail survey and ten qualitative executive interviews.

Findings

This study found that group-owned luxury fashion retailers usually encounter fewer difficulties when internationalising into mainland China than their individually owned counterparts because of parenting advantage, particularly functional and service support. However, the success of some individually owned brands has demonstrated that branding strategies, management culture, international experience, financial power and local partners’ know-how are as important as parent company support and although the luxury market in mainland China has become developed, many foreign luxury fashion retailers still enter Hong Kong prior to mainland China. However, in relation to post-entry management and expansion strategies, the importance of Hong Kong has weakened because the emergence of capital cities, the growth of the middle class and fewer political restrictions.

Research limitations/implications

The research findings are generated in the context of Hong Kong and mainland China, they are therefore limited in explaining luxury fashion retailers’ internationalisation strategies in other markets. Despite the challenge of the sample size, 63 out of 130 survey respondents (48.5 per cent response rate) and ten interview participants are felt to be sufficient to represent the market.

Practical implications

This research can be used by practitioners when assessing appropriate entry strategies to the Chinese luxury fashion market.

Originality/value

This is a pioneering study of the Chinese luxury market from the perspective of international retail strategies. It differentiates between Greater China (including Hong Kong, Macau and Taiwan) and mainland China, and examines the impact of luxury fashion retailers’ ownership structures on their internationalisation strategies.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

1 – 10 of 349